The extent of Dubai’s economic woes were underlined yesterday when HSBC Middle East reported that its profits slumped last year, mainly because of loan impairments in the United Arab Emirates, its largest market in the region.
Dubai, the UAE’s main business hub, is still reeling from a severe property crash and was forced in late November to seek a debt restructuring of its Dubai World conglomerate. Talks with creditors, including HSBC, are continuing.
HSBC Middle East reported that regional loan impairments more than quintupled last year to $1.7bn, depressing the bank’s pre-tax profits to $455m, down 74 per cent from 2008.
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